National Advance Payday Services - Loan Collection Scam

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Thursday, December 3, 2009

The Washington State Department of Financial Institutions is warning consumers to verify the license of any lending professional they are considering doing business with to avoid becoming victims of potential scams.

Please note that these scammers are frighteningly well informed, very persistent and extremely threatening. Anyone who has been contacted by them should take steps to protect their personal financial information and treat this as a matter of identity theft.

National Advance Payday Services may be conducting a loan collection scam. National Advance Payday Services does not have a listed address.

National Advance Payday Services has provided the following telephone numbers:

1-323-207-7417

National Advance Payday Services does not appear to have a Web site.

The company is not licensed by the Department of Financial Institutions.

How The Potential Scam Works

  • Representatives of National Advance Payday Services make unsolicited telephone calls to consumers at home or at work. The scammers tell consumers that they are being prosecuted for loan fraud, bank fraud or

    check fraud because they have defaulted on a payday loan

  • The scammers may threaten the consumer with immediate arrest
  • The scammers usually tell consumers that they received a payday loan of several hundred dollars in 2008, they may tell the consumer that the debt has increased to several thousand dollars
  • The scammers have the personal financial information of the consumer, including bank account numbers, social security numbers and the names of relatives
  • The scammers demand immediate payment of the debt by wire transfer or by providing a checking account or credit card number
  • If a consumer pays the scammers, they will continue to aggressively contact that consumer for even more money
  • These scammers are highly persistent and may make dozens of threatening calls in a short period of time.

If You Feel You're A Victim

Consumers should know that Washington state law prohibits threatening or harassing behavior by individuals attempting to collect a payday loan. Only licensed companies are permitted to make payday loans in Washington.

Source: www.dfi.wa.gov

Category: Payday loans

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